Mercer HR Services, a HR outsourcing business arm of Mercer Human Resource Consulting, announced that it would spend $50 million over the next three years, for setting up a global operations center in India.

In the first phase, the company has entered into a partnership with Patni Computer Systems Ltd., under which the latter would build and operate a center located in Noida (near New Delhi) to service Mercer HR’s global back-end, non-client facing engagements. At a later stage, the center may be transferred to Mercer.

“We are in outsourcing business where we have to be efficient and offer services at a reasonable price. We have to optimize the way we deliver our services and we will leverage the quality and efficiency present in India. The center we are forming with Patni will undertake work from across the globe,” said Jeffrey M. Miller, President, Mercer HR Services. He further added that the company’s presence in nine countries would now be client facing, while operations and processing would be centralized in India.

“Mercer would bring HR outsourcing contracts in the benefits-outsourcing space including pension and administration among other functions,” said Miller. “We plan to spend $50 million in three years as total investment. Some of it will go to Patni as a partner. After a few years we will review the position and may transfer these employees to Mercer,” he added.

Under the contract with Patni, the operations would start with 50 Full Time Equivalents (FTEs) in the global operations center in Noida, growing to 200 professionals this year, and 1200-1500 in three years.